Exit Strategy
What is an Exit Strategy?
An exit strategy is a plan for how the founders and investors of a startup will exit the business, ideally making a profit. Common exit strategies include acquisitions, Initial Public Offerings (IPOs), or mergers. Having a clear exit strategy is important for aligning goals and preparing for potential opportunities or challenges that may arise in the future.
Common Types of Exit Strategies
- Acquisition: Selling the company to another business.
- IPO: Going public and offering shares on a stock exchange.
- Management Buyout: The company’s management team buys out the existing shareholders.